Nike’s Pace plan targets $2.5 billion in savings and fewer jobs

Nike said its new Pace operating model will streamline the company and result in fewer jobs, while targeting about $2.5 billion in cumulative savings through fiscal 2031. Chief Executive Elliott Hill said decisions on affected roles will begin in calendar 2027 or later, but the number of positions and their locations are not yet known. The announcement came with Nike’s report of first-quarter revenue of $11.2 billion for the three months ending August 31, 2026, down 4% from a year earlier. The company forecast that revenue in fiscal 2027 will decline by a high-single-digit percentage. Nike expects Pace to generate about $1 billion in pretax charges through fiscal 2031, primarily related to employee costs. The company also cited about $300 million in severance costs recognized in fiscal 2026 and expects another $300 million in restructuring costs in fiscal 2027. These are company estimates, and Nike said the figures could materially change. Pace includes changes to Nike’s operating structure and global supply chain, a new campus in Bengaluru, India, and a shift from four geographic regions to three. The geography change is planned to begin in fiscal 2028.